"Where Were Financial Literacy Programs When I Was A Child, Nobody Taught Me How To Balance A Check Book"
Too many young people don’t understand money. I was so upset to read that in a recent article published on Forbes.com
As millennial’s we can change that narrative by having talks with our children about the value of a dollar. Teaching our children financial literacy gives them lessons that can be used for their entire lives.
When I say Financial literacy – I don’t mean just how to spend money, but how to save money and how their attitudes should be towards money.
These talks must be had………….
Children pick up information starting very young, we underestimate how smart they really are sometimes. Even at a young age they know the difference between a want and a need.
Money is usually taught at home by parents. It’s important to turn key moments into opportunities for developing positive financial behaviors.
Here are a few ways to introduce Financial Literacy to your children
Piggy banks introduce saving money and budgeting to your children. I tell my son that the goal is to fill up his piggy bank with dollars and coins, until there is no room.
The more money he saves, the more his money will grow. I highly encourage him to put some coins away for a rainy day. He doesn’t always listen but at least I’ve planted that seed in his head to start saving.
The piggy bank my son has talks to you, tells him how much money he has so far and even better it sets goals with him.
2. Keep Them Involved
Let them see you use your bank card in the line at Target. Allow them to watch you write a check. Explain the process of what happens when you write a check. Explain what happens if you write a bad check.
If your child is old enough let them swipe the credit card (with you there of course)
The more you keep them involved the more curious they become. It’s your job to feed that curiosity with answers.
Talk to your children like adults when it comes to money, they’re smarter than we give them credit for.
Don’t rely on these failing public schools to teach your child everything they need to know. Find fun and creative ways to give the lesson yourself.
These flashcards are bright with colorful graphics that will keep the attention of just about any and all children. Some of us as parents might feel unqualified to teach our children financial literacy, but these flashcards make learning fun.
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4. Open A Savings Plan For Your Child
Gerber Life’s Grow-Up Plan is a whole life insurance policy, that is not only affordable but you can purchase on your children as early as 14 days old.
The Grow-Up Plan provides financial protection, builds cash value and can guarantee life insurance coverage for a lifetime. They offer coverage options from $5,000 to $50,000.
I started one for Dashawn, I only pay $20 or $25 a month. Super affordable!
If your child is old enough to ask you to buy them a new toy or a new game, their old enough to have chores. Chores are a great way to teach responsibility. It also shows your child they must work for what they want. As long as they can complete their chores they will receive an allowance. My sons responsibility is to clean the kitchen Monday through Friday and keep his bathroom cleaned. I shouldn’t have to ask for these chores to be done daily. They are expected to be done.
6. Sell Something To Their Friends
It could be something as simple as a candy bar. I remember having a neighbor who would sell chocolate candy bars for $1.25. He would sell them to all of the other little boys and girls in the neighborhood. He purchased these candy bars for cheap then turned around and sold them for more.
Smart child, on Saturdays I would even see him walking around with a lawn mower, asking to cut everyone’s grass.
Next, he started selling customized shoe strings to his friends, then it sky-rocketed from there.
Remember children do what they see us do, not what we tell them to do, unfortunately.
So your attitude towards money will reflect their attitude towards money.Help your child think outside of the box. Help develop good spending habits before they even start.
Make sure you check out Ashley over at sense2cents where she educates young children about the importance of financial literacy!
Do you discuss money with your children at home? What kinds of creative ways do you teach financial literacy? Do you think it is important for children to learn financial literacy?